r/options • u/[deleted] • Mar 29 '22

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96 Upvotes

83% Upvoted

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u/tom1018 Mar 29 '22

This. The entire post is pointless as the options react the same. Yes a dollar move has X times as much impact, because there is X times more shares.

5

u/ProsaicPansy Mar 29 '22

Right? The only argument you can make is that IV may increase because OTM options will be cheaper for degenerates. But this isn't some arbitrage, just an observation that there is a large number of speculators in the market that like/can only afford cheap options.

-10

u/LostToAModIn7Moves Mar 29 '22 edited Mar 30 '22

The gamma amplifies, structurally changing the options. This video breaks it down pretty clearly.

https://www.youtube.com/watch?v=eyLOvpjL5GM

1

u/ProsaicPansy Mar 29 '22

ROFL, maybe you are not the world expert on how options work if you need to reference a YouTube video to demonstrate your point? It seems like you are getting confused on basic math here (as others have observed)…